The company TNT has achieved various benefits from tailoring the operations to meet and exceed the customer expectations. The company focusses on the customer to ensure satisfaction to the customer using the goods and services. TNT has put various standards to ensure that the customers get full satisfaction from the services rendered.¹
Therefore, the importance of customer focus to the company include experiencing increased customer satisfaction in the market measured on 31 aspects linked to consumer promise. The company has achieved the increase by ensuring that the customers get value for the amounts paid by getting on-time delivery of goods and paying personal attention to the specific customer needs.
Another importance includes increasing the productivity of the customer promise programme and generating overall savings of almost 660k. Therefore, the business has reduced the expenses incurred in the delivery to the customers, which indicates an improvement in the operations. The company has been able to reduce the expenses by introducing activities such as product tracking that help to secure the goods in transit. The tracking allows the company to avoid losses that could incur in the case of losing the products or delivery the wrong customer.
¹ Blome, Constantine. 2017. “International Journal of Operations and Production Management.” Emerald Publishing. https://www.emeraldinsight.com/.
²Blome, Constantine. 2017. “International Journal of Operations and Production Management.” Emerald Publishing. https://www.emeraldinsight.com/.
Moreover, the company has been able to achieve the targets set in 2010 and 2011 despite experiencing tough economic times. The company was able to generate income and provide service to the customers even with the low incomes. The action was made possible by the ability to attract many customers with the customer focus strategy. Therefore, the business operated normally even during the tough economic times, which further shows the importance of the customer focus.³
An additional importance includes making the business an industry leader by being the top customer choice for delivery services. The business has beat competition in the market by delivering the services that exceed the customer’s expectations. The customers continue using the services, which makes the business popular and a leader in the market.?
³Boag, Paul. 2018. Customer Journey Mapping: Everything You Need to Know. Accessed May 14, 2018.
?Boag, Paul. 2018. Customer Journey Mapping: Everything You Need to Know. Accessed May 14, 2018
Elaborate on the factors which affect customer satisfaction from the case study
Various factors affect the customer’s satisfaction depending on what the customer requires most from the services. Therefore, the business should identify the various customer needs and do the best to satisfy.? However, the case study shows that factors such as the ease of use affect customer satisfaction. The ease of use refers to the ability of the customers to understand the services provided to ensure the derivation of maximum benefit. Therefore, the organisation should assist the customers to use the services in the best way possible through actions such as education and other support activities. The business should ensure that the customers use the services correctly and know the points of accessing the services. For example, TNT should create customer awareness about the services offered.
Additionally, the personal relationships also affect the customer satisfaction due to the level of attachment to the business. The company should create a relationship with the customers that indicates that the customers are very valuable to the operations of the business.? For example, TNT should ensure that the customers have an emotional attachment to the business to increase satisfaction. The emotional attachment makes the customers feel that the company has the will to meet the expectations, which increases the customer’s satisfaction.
?Brito, Marisa P. de. 2014. Managing Reverse Logistics or Reversing Logistics. https:www.pdfdrive.com.
?Ishola, Timothy. 2016. Principles of Purchasing and Supply. National Open University of Nigeria. https://www.pdfdrive.com.
Furthermore, the business should allow the customers to pay through appropriate payment systems. The freedom of payment allows the customers to avoid the hustle of getting the payment in the form required by the company, which increases the satisfaction.? For example, TNT should allow the customers the freedom of paying for the products with the available means of payment. For instance, some customers would like to pay goods on credit, which means that the demand to pay cash on delivery would lead to dissatisfaction. Therefore, the operations should streamline to accommodate such customers.
Another factor affecting the customer satisfaction includes having an effective complaints process. The process refers to ensuring that the customers have the chance to air concerns or problems with the services or goods offered to the responsible persons. Furthermore, the business should take up the complaints and solve the problems identified by the customers.? For example, the businesses should have a department dedicated to taking questions and complaints from the customers and giving timely feedback.
Furthermore, after sales services also affect the customer satisfaction. The services include extending the activities done by the company to ensure that the customer interacts properly with the delivered goods. The actions include such as installation, free repairs and warranties to offer support to the customer.? The after sales services ensure that the customers enjoy all the services of the product. For example, TNT should offer after sale services such as visiting the employees to identify whether the products delivered served the required purpose.
?Brito, Marisa P. de. 2014. Managing Reverse Logistics or Reversing Logistics. https:www.pdfdrive.com.
?Juneja. 2018. Management Study Guide. https://www.managementstudyguide.
?Mandviwalla, Munir. 2015. Fox School of Buisness. March 19. .
Recommend to TNT how to improve their customer service
TNT should introduce technology to the business to increase efficiency in serving customers. An example of technology include developing a website where customers make orders and payments for the services.¹? The website could increase customer services due to the timeliness of passing information to the business. Additionally, the customers would benefit from the easy ordering and paying of goods online without having to move physically. Therefore, the customers would appreciate the reduced manual effort involved when requesting for the services.
Furthermore, TNT Company should integrate the internal processes to increase collaboration among the functional groups. The integration ensures that the parties involved in supplying products to the customers work towards a similar objective of satisfying the customers.¹¹ For example, the company should ensure the management’s cooperation to ensure the allocation of resources to the success of the customer satisfaction goals. Additionally, the business brings on board the supply and operations department to ensure that the products reach the customers in the right standards and time. Therefore, the TNT Company should not overlook the importance of involving all departments in achieving customer satisfaction in the market.
¹?Mandviwalla, Munir. 2015. Fox School of Buisness. March 19. https://www.community.mis.temple.edu.
¹¹Mark Pagell, Brian Fugate. 2018. “Journal of Supply Chain.” Wiley Online Library. https://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1745-493X.
Additionally, TNT Company could increase customer satisfaction by performing customer service audits to identify the elements of customer services. The identification of elements assists in finding better ways to serve the customers in the market by adhering to the methods that lead to satisfaction.¹² Moreover, the audits assist to expose the service weaknesses that result in poor services to the customers. Therefore, the company could improve the exposed weaknesses to increase satisfaction.
The best mode of transport for the raw teakwood from Malaysia to India is water transport.¹³ The mode represents the best option for transportation due to the nature of the product and the distance travelled. The raw teakwood is very heavy to transport from one place to another, which calls for a mode of transportation that can accommodate the weight. Therefore, only water transport could perform the task by using ships that have the capacity to carry heavy loads. One cannot air transport to traffic such loads due to the weight limitation present in aeroplanes. Similarly, the transportation of raw teakwood could not use land mode of transportation due to the weight limitation placed by the road transport authorities. Therefore, water transport represents the best option due to the ability to accommodate heavy luggage without trouble.
¹²Mark Pagell, Brian Fugate. 2018. “Journal of Supply Chain.” Wiley Online Library. https://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1745-493X.
¹³Nigel Slack, Alistair Brandon-Johnson, Robert Johnstone. 2013. Operations Management. 7. Madrid, Spain: Pearson. https://www.pdfdrive.net/operations-management-e19944602.html.
Furthermore, the nature and shape of the luggage only allows transportation by water from Malaysia to India.¹? The reason lies in that the raw teakwood could include bulk, long and wide logs that cannot easily fit on trucks to transport by road. Therefore, the transporters have the single option of using ships that are wide and have the capacity to carry many logs. Additionally, water transportation could allow the transporter to make a one way trip from Malaysia to India unlike when using roads or air, which could require multiple expensive trips. Therefore, the water transport saves on the costs incurred during the transportation due to carrying the goods at once without making many return trips.
Furthermore, the ship transportation allows the movement of products between very far regions such as Malaysia and India. The water transportation has the ability to evade geographical barriers such as mountains and valleys, which limit the extent of land transportation.¹? For example, road transportation could not move to very many places due to the shortage of roads linking up countries. Therefore, the water mode of transportation represents the best solution due to the ability to pass the international boundaries from Malaysia to India.
¹?Olsen, Erica. 2018. Strategic Implementation. https://www.onstrategyhq.com.
¹?Perks, Richard. 2017. Quality Control Systems and Customer Satisfaction. Accessed April 21, 2018. acdemic.mintel.com.
Water transport has various advantages such as having the capacity to transport heavy cargo unlike all other modes of transportation. The advantage to transport very bulky loads only exists in the water transportation due to the availability of large capacity ships.¹? The large capacity ships can only sail in water due to the lack of weight restrictions that exist in land and air transportation that restrict very heavy cargo. The air and land transport restrict the heavy cargoes due to the risk of aeroplanes falling and road transport causing accidents to human beings. However, in the water mode of transportation, such risks do not exist, which makes water transportation useful to carry very bulky cargo.
Furthermore, water transport has the advantage of following free natural routes from one country to the other.¹? Therefore, the mode of transportation experiences little congestion and increased frequency of movement. The less congestion exists due to the large size of the water masses and countries have signed agreements that allow free transportation. Therefore, the ships do not incur fees such that increase the costs incurred in transportation.
¹?Russell R. S., Taylor B. W. 2014. Operations and Supply Chain Management. 8. Wiley. https://www.wileydirect.com.au/buy/operations-and-supply-chain-management-8th-edition/.
¹?Smet, Aaron De. 2018. “The Agile Manager.” McKinsey Quarterly China. https://www.mckinsey.com/insights/china.
The other advantage includes economical transportation over long distances. The water transport saves on costs due to the distribution of fuel costs over great cargo quantities.¹? Therefore, the transporters do not have to pay much money even with the long distances moved by the products. The saving on costs reduces the expenses incurred, which results in more profits during a financial year.
The water transportation is very slow thus could cause delays in the receipt of the products due to the long-time taken before reaching the destination.¹? The delays in delivery could cause customer frustration and halting of projects dependent on the products in transit. Therefore, the mode could end up causing other disadvantages to both the consumer and producer. Moreover, the slow nature of transportation does not allow the transportation of perishable goods since most go bad while in transit. Therefore, the mode of transport excludes perishable products to avoid gross losses for the buyer.
¹?Smet, Aaron De. 2018. “The Agile Manager.” McKinsey Quarterly China. https://www.mckinsey.com/insights/china.
¹?Smith, George A. 2018. “Journal of Supply Chain Management.” Wiley 54 (4). https://www.wiley.com/en-us/Journal+of+Supply+Chain+Management-p-9780JRNL64574.
Furthermore, the water transportation has the disadvantage of causing very high expenses while making both the ships and the routes for transportation.²? The ships require much funding and the purchase of expensive equipment to build. Therefore, only a few transport companies own the ships meaning that securing a ship for transport could prove difficult. The difficulty arises from the high demand than the supply of ships in water transportation, which requires the transporters to pay expensive fees to pay for an already booked ship. Furthermore, the transport routes dig deep into the expenses of a country of a transport company due to the building of canals. The canals connect dry land to the ocean, which requires very expensive materials to ensure the successful development. Therefore, only a few countries rich countries have the ability to develop the canals leaving the poor countries inaccessible by water transport.
Additionally, water transport has the disadvantage of insecurity that could lead to the loss of cargo in transit. ²¹ The security threat arises from the pirates found in the deep seas where no security exists to protect the ship and the cargo. The pirates attack the ships and steal the expensive cargo thus causing huge losses to the owners of the products. Therefore, the mode still does not offer the best solution to the movement of very expensive goods due to the risk of losing both the cargo and the ship.
²?Smith, George A. 2018. “Journal of Supply Chain Management.” Wiley 54 (4). https://www.wiley.com/en-us/Journal+of+Supply+Chain+Management-p-9780JRNL64574.
²¹Smith, George A. 2018. “Journal of Supply Chain Management.” Wiley 54 (4). https://www.wiley.com/en-us/Journal+of+Supply+Chain+Management-p-9780JRNL64574.
The consumer good is rice that allows a moderately long supply chain due to the ability to last for long without perishing.²² Rice is a grain grown in large scale by farmers for consumption or sale to the market. The product has a high demand due to the consumption by many households around the world. Therefore, rice supply chain could involve transportation to other countries by use of air, land and water means of transport. Furthermore, the products require proper handling to avoid contamination that could cause illnesses to consumers. The product increases in price with the movement in the supply chain since each party intends to increase the value of rice before passing on to the next stage.
The first party includes the farmers who grow the products in both large and small fields in different parts of the world. The farmers take care of the products to ensure the output meets the market requirements in terms of quality and safety of consumption.²³ Additionally, the farmers use the advice of field officers to ensure that the rice grown meets the demand levels in the market. The various farmers grow rice for various needs such as selling and domestic consumption. However, the largest percentage of the farmers grow rice to supply to the market and earn a profit. Therefore, the farmers grow the products and sell to the intermediaries at the set market prices. The intermediaries later sell the products to the wholesalers at a profit.
²²Wagner, Dr Beverly A. 2018. “Supply Chain Management; An International Journal.” Emerald Publishing. https://www.emeraldinsight.com/journals.htm?issn=1359-8546.
²³Wagner, Dr Beverly A. 2018. “Supply Chain Management; An International Journal.” Emerald Publishing. https://www.emeraldinsight.com/journals.htm?issn=1359-8546.
The wholesalers buy the rice in bulk from the intermediaries while some also buy directly from the farmers. The wholesalers handle the rice differently depending on the resources available since some wholesalers the rice in warehouses while others increase the value of the products. The wholesalers that store the rice in warehouses sell directly to the retailers at added prices. However, the wholesalers could wait patiently for shortages in the market to sell the products at higher prices.
On the other hand, other wholesalers increase the value of the products through branding and sorting the rice (Suzanne de Treville 2016). The branding involves putting the products in wrappings and labelling attractively to appeal to the customers. Moreover, sorting refers to the action of grading the products depending on quality and weights of the packets. The sorting allows the customers in the market to choose the best quality based on the income. Furthermore, the wholesalers have the opportunity to fetch higher prices for the products.
²?Suzanne de Treville, Tyson Browning. 2016. “Journal of Operations Management.” Elsevier. https://www.elsevier.com/wps/find/journaldescription.cws_home/523929/description#description.
²?Suzanne de Treville, Tyson Browning. 2016. “Journal of Operations Management.” Elsevier.
The other activity performed by the wholesalers include transporting the products in bulk to various markets.²? The markets include both international and local markets. The local markets require simpler transportation such as road and railway due to the short distances involved. Furthermore, the international transportation uses such as air and water mode of transport due to the long distances involved. Moreover, the wholesalers transporting to international distances use air and water to overcome the geographical barriers.
The other stage of the supply chain involves the retailers who buy the rice from the wholesalers.²? The retailers bridge the distance between the wholesalers and the customers by availing the rice at points that the customers can easily access. The retailers buy the products from the wholesalers in bulk and store in the outlets such as supermarkets and shops. The retailers then break the bulk to achieve small units sellable to the customers.
²?Terje Slatten, Mehmet Mehmetoglu. 2009. “Managing Service Quality.” Emerald Insight 17 (5): 493. https://www.emeraldinsight.com/toc/msq/17/5.
²?Terje Slatten, Mehmet Mehmetoglu. 2009. “Managing Service Quality.” Emerald Insight 17 (5): 493. https://www.emeraldinsight.com/toc/msq/17/5.
Additionally, the retailers pass useful information to the customers about the products available in the market.²? Therefore, the retailers allow the customers to access a wide pool of products by having choices of products on the shelves of the supermarkets and other retail outlets. Moreover, the retailers provide information about the prices of the products and the differences in the quality of the different brands. The retailers also pass information to the wholesalers about the demand in the market. The retailers have first-hand information about customer tastes and preferences due to the direct communication with the final consumers. Therefore, the retailers represent the best source of information about the market.
The final stage of the supply chain involves the final consumers of the rice. The customers demand the products from the market to use in domestic consumption.²? The domestic uses of rice include human and animal consumption. The customers shape the various factors of the supply chain such as the length depending on the levels of demand. For example, during very high demand, the supply chain reduces the parties involved in the delivery of the products to ensure that the products reach the customers quickly. On the other hand, the supply chain has the freedom of involving more members during the periods of low demand in the market. Therefore, the customers play an important role in shaping up the supply chain and consuming the products.
²?Nigel Slack, Alistair Brandon-Johnson, Robert Johnstone. 2013. Operations Management. 7. Madrid, Spain: Pearson. https://www.pdfdrive.net/operations-management-e19944602.html.
²?Blome, Constantine. 2017. “International Journal of Operations and Production Management.” Emerald Publishing. https://www.emeraldinsight.com/.
Blome, Constantine. 2017. “International Journal of Operations and Production Management.” Emerald Publishing. https://www.emeraldinsight.com/.
Boag, Paul. 2018. Customer Journey Mapping: Everything You Need to Know. Accessed May 14, 2018. https:www.sailthru.com.
Brito, Marisa P. de. 2014. Managing Reverse Logistics or Reversing Logistics. https:www.pdfdrive.com.
Ishola, Timothy. 2016. Principles of Purchasing and Supply. National Open University of Nigeria. https://www.pdfdrive.com.
Juneja. 2018. Management Study Guide . https://www.managementstudyguide.com.
Mandviwalla, Munir. 2015. Fox School of Buisness. March 19. https://www.community.mis.temple.edu.
Mark Pagell, Brian Fugate. 2018. “Journal of Supply Chain.” Wiley Online Library. https://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1745-493X.
Nigel Slack, Alistair Brandon-Johnson, Robert Johnstone. 2013. Operations Management. 7. Madrid, Spain: Pearson. https://www.pdfdrive.net/operations-management-e19944602.html.
Olsen, Erica. 2018. Strategic Implementation. https://www.onstrategyhq.com.
Perks, Richard. 2017. Quality Control Systems and Customer Satisfaction. Accessed April 21, 2018. acdemic.mintel.com.
Russell R. S., Taylor B. W. 2014. Operations and Supply Chain Management. 8. Wiley. https://www.wileydirect.com.au/buy/operations-and-supply-chain-management-8th-edition/.
Smet, Aaron De. 2018. “The Agile Manager.” McKinsey Quarterly China. https://www.mckinsey.com/insights/china.
Smith, George A. 2018. “Journal of Supply Chain Management.” Wiley 54 (4). https://www.wiley.com/en-us/Journal+of+Supply+Chain+Management-p-9780JRNL64574.
Suzanne de Treville, Tyson Browning. 2016. “Journal of Operations Management.” Elsevier. https://www.elsevier.com/wps/find/journaldescription.cws_home/523929/description#description.
Terje Slatten, Mehmet Mehmetoglu. 2009. “Managing Service Quality.” Emerald Insight 17 (5): 493. https://www.emeraldinsight.com/toc/msq/17/5.
Wagner, Dr Beverly A. 2018. “Supply Chain Management; An International Journal.” Emerald Publishing. https://www.emeraldinsight.com/journals.htm?issn=1359-8546.
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